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High Country Economics|5 min read

What Turnover Actually Costs a High Country Business

Turnover in Boone runs on the academic calendar, whatever kind of boss you are. The real cost is paying for the same training every semester. Written operations make each departure survivable.

High Country turnover is structural. App State students leave on the academic calendar, and a cost of living that outruns local wages pulls year-round workers out of the county. Good management can't change either one. Documented operations make each departure cheaper.

I want to say that plainly at the top, because owners here tend to take turnover personally. They lose a good person in May and wonder what they did wrong. Usually the answer is nothing. The semester ended.

Two forces, neither of them yours

The first force is the calendar. Boone is a university town, and a lot of the hourly workforce, as far as I can tell, is students. Their availability follows the school year. They arrive in August with move-in, get good by October, thin out around December exams, come back for spring, and leave in May. Some stay for the summer. Many don't. An owner who hires students has signed up for that rhythm whether they know it or not.

A loop through the school year in which students arrive in August, get good by October, thin out at December exams, come back for spring and leave in May

  1. August

    arrive with move-in

  2. October

    good at the job

  3. December

    thin out around exams

  4. Spring

    come back

  5. May

    leave, and some stay for summer

Then August again, with a new hire.

The second force is cost of living. From what I see, housing in and around Boone costs a lot relative to what most local jobs pay, and anecdotally a lot of year-round workers end up commuting from Deep Gap, Blowing Rock, Wilkesboro, or farther. A commute up 421 in February is a reason to take a job closer to home. So is another dollar or two an hour across town. Nobody in that story is behaving badly. The worker is doing the math on gas and rent, and the owner across town is trying to staff a Saturday.

Every business here feels both forces at once. It hits the line cook and the server hardest, but it doesn't stop there. A dental office loses its front-desk person to a job with better hours. A lawn crew loses its best mower operator in October, right when leaf cleanup starts. A retail shop on King Street trains a new weekend clerk every fall.

Re-buying the same training

Hiring is the visible cost. The posting, the interviews, the paperwork. It's annoying, and it's the smaller number.

The larger cost is re-buying the same training. Think about a new hire's first two weeks. Somebody has to show them how the register handles a gift card, where the extra filters are kept, which customers want a call before the crew shows up, and how the schedule actually gets made. That somebody is usually the owner or the most experienced employee. For two weeks, two people are doing one job, and the one teaching is the one you can least spare.

Then the new hire learns it, gets good, and leaves in May. In August you pay for the same two weeks again. And again in January. The training never becomes an asset because it lives only in the person who received it.

The quieter cost is the knowledge that walks out. Every long-tenured employee carries things nobody wrote down. The supplier rep who'll squeeze in a delivery if you text before noon. The patient who needs a reminder call two days ahead or she won't come. The trick to resetting the walk-in compressor when it trips. When that person leaves, the knowledge goes too, and you find out it existed the first time something breaks.

The way out you probably can't take

The obvious answer is to pay more and keep people longer. Sometimes that's right, and it's your decision to make about your own margins. I'm not going to tell anyone what to pay.

But the dollar-or-two race has a ceiling for most small businesses. There's always someone across town who can offer a bit more for a while, and a business that can only hold staff by outbidding everyone is one competitor's raise away from a bad month. Pay can slow turnover. It can't change the academic calendar.

The way out you can take

The part you control is how much each departure costs. A business where the work is written down survives turnover far better than one where it lives in people's heads.

Concretely, that means short documents a new hire can follow on day one. How to open. How to close. How to handle the five questions customers ask most. Where things are kept. Which customers have standing instructions. One page each, written in plain language, kept where the staff can find them. A dental office's front desk might have one page on how insurance verification goes and one on the reminder calls. A lawn crew might have a route sheet with the gate codes and the client who doesn't want the clippings blown into her flower bed.

Losing a good person still hurts with all of this in place, and the new one still has to learn. What the pages change is the cost. Onboarding drops from two weeks of shadowing to a few days of reading and checking. The knowledge stays in the business when the person goes. And the owner stops spending every August re-teaching the same lessons.

The post on the bus test makes the case that customers, lenders, and managers all read the same written evidence, and this is that evidence at its most practical. If you want help getting the unwritten parts of your business onto paper, that's what continuity work does.

This is the first piece I've written about labor here, and I don't think it's the last. The housing side of the story deserves its own look, and I'm still working out how much of it a business owner can do anything about.

Common questions

Why is employee turnover so high in Boone?

Two forces meet here. As far as I can tell, much of the hourly workforce is App State students whose availability follows the academic calendar, and the cost of living pushes many year-round workers to commute in from elsewhere or move to a job that pays a little more. Neither is a sign of bad management.

What does employee turnover actually cost a small business?

The hiring is the visible part. The larger cost is retraining, paid in the owner's or a senior employee's hours, plus the knowledge each person takes with them. A business that relies on memory pays that cost again with every departure.

How can a small business reduce the cost of turnover?

Write down how the work is done, in short documents a new hire can follow on day one. People will still leave, but onboarding gets shorter, knowledge stays in the business, and you stop paying for the same training every semester.

Should I just pay more to keep people?

That depends on your margins and your market, and it's your call. Pay matters, but a business that can only hold staff by outbidding everyone is fragile. Making departures survivable helps at any wage.

Rather have someone work through this with you?

The assessment is free. I pull your public data and show you what I see, and your numbers stay yours.